Online retailer Zulily is crashing

Zulily is melting down after the online retailer reported revenues that missed expectations.

The stock was down as much as 26% on Thursday to as low as $14.57 a share.

In its earnings release on Wednesday, Zulily reported fourth quarter revenues of $391.3 million, up 52% year over year, but missing estimates for $408.8 million.

Earnings per share also came in less than expected, at 8 cents a share compared to an estimated 14 cents.

During the company's earnings conference call, chief financial officer Marc Stolzman said the company saw higher customer churn (or customer loss) among new clients, and this impacted revenues.

RBC Capital Markets downgraded the stock to "Sector Perform" following the earnings report.

In a note Thursday, RBC's Mark Mahaney wrote: "We had considered Zulily a leading 'Mom' brand, with high customer loyalty, great distribution for emerging brands and boutique vendors, a FCF-efficient, inventory-lite model, and a very good management team. The execution mistakes of the past two quarters (re: the email marketing "outage" and the lack of new fulfillment center efficiencies) have been significant. And the elevated churn of recent cohorts calls into question the attractiveness of the Zulily value proposition beyond a limited customer base."

Zulily went public in the fall of 2013 and offers daily online deals targeting mothers and their children.

Over the last year, and including Thursday's plunge, the stock is down more than 60%.